Albufeira the 'principle tourist location' in the Algarve

Despite Spain often being the first port of call for British holidaymakers in search of a bit of sun, neighbouring Portugal offers a similar opportunity to bask under clear skies and kick back on sandy beaches.

And according to Daniel Queiros, executive director at the Algarve Promotion Bureau, Albufeira - situated in the south of the country - is the ideal spot for tourists looking for everything from local culture to adventurous days out and scorching temperatures.

"Albufeira is one of the principal tourist areas in the Algarve, with beautiful beaches, historical sites and meandering streets with lively shops, restaurants, bars and discos," he said.

"It is the perfect summer holiday beach town with lots to offer, including boat trips to explore the nearby caves."

Whether you're looking for the chance to experience some traditional Portuguese cuisine or just spend the week relaxing away from the office, it seems that Albufeira is one of the best places to do so if you're heading to the Algarve.

What's more, for any aspiring investors thinking of buying property in Portugal, the latest Global Property Guide has revealed that house prices in the country dropped by 10.95 per cent between Q2 of 2011 and the second quarter of 2012.

So with all of the tourists that will be looking for villas and apartments around Portugal's various cities, there could be plenty of opportunities for landlords to pick up an overseas bargain and reap the rewards as the holidaymakers come flooding in.

Yet despite the impressive numbers of people that visit the country every year, investors will need to protect their new assets with holiday home insurance policies in order to cover the cost of any damage inflicted by occupants.

Indeed, with many families often having mischievous little ones, it's not uncommon for the odd accident to happen, and landlords need to be prepared for such incidents in order to keep their portfolios profitable.